The technology industry is undergoing some major and formidable shifts. Those shifts are putting every business at stake to either take advantage of and strive or inevitably expose those legacy fault lines and crash.
The technology shifts are not only transforming tech firms, but also every other industry; from manufacturing, agriculture, government services, safety, health, education, to critical infrastructure.
Every industry is being transformed and disrupted by technology.
Most of the established technology companies are facing a mid-life crisis, some an end-of-life one; their own industry is quickly shifting and that of their clients as well.
Those companies continue to fight their relevance war to sustain their leadership position to command premiums.
Technology companies are faced with the inevitable risk of rapid-irrelevance with their traditional sustainable competitive advantage strategies are becoming fast obsolete.
In respond to this crisis, they are splitting, consolidating, “right”-sizing, re-thinking and striving for continuity and survivability.
Majority of traditional technology companies do not short of vision and strategies, one would argue they had far too many; their Achilles heel, and to borrow from Nike, is just do(ing) it – [execution].
Internal barriers to their transformation are essentially their current
Risk free quote-to-cash financial construct
Addiction to margins
Roadblock to innovation: Protecting Legacies - fear of self cannibalization
Rigidity of offering
Inability to industrialize their offering
Industrialization of Internet and new financial constructs and consumption models are quickly shifting technology budgets from the CIO to other members of the C-suite;
Accelerated by the fact that technology is becoming the strategy to many industries, those increasing budget shifts do provide greater assurances of vertical, timely and domain implementation and integration in the business.
Smaller, agile, industrialized and unsurprisingly more relevant upcoming technology companies are becoming more relevant to businesses and large enterprises than those with older heritage and significant installed base.
New entrant technology companies are leading the thought leadership discussion, providing the proof points and earning the coveted seat at their clients’ boardroom. A seat that has been traditionally taken by those with more established brands but now with diminished economical values.
The irony is while technology is fast becoming “the strategy” to many industries; many large technology companies are becoming irrelevant to their client business.
This is not the future.... this is now